Major coal mine to close in 2028 with hundreds of jobs lost, union says

Hundreds of jobs will be lost over the next 18 months as a major coal operation in the New South Wales Upper Hunter begins a staged closure.

Yancoal has announced mining operations at its Ashton mine will cease in early 2028.

In a statement, Yancoal said it had identified significant technical challenges and operational risks, adding market conditions will impact Ashton's financial performance into the future.

"Combined, these factors are undermining Ashton's viability as a sustainable ongoing operation," the statement said.

Yancoal said the closure would be a staged process.

"There will be several phases to ending Ashton's mining operations: the initial reduction of planning and development activities; the completion of development mining in early 2027; and the completion of longwall mining in early 2028."

The Mining and Energy Union (MEU) said 60 jobs were at immediate risk from today's announcement.

Yancoal said its immediate priority was supporting the workforce and their families through this period.

"We are committed to working closely with affected individuals to provide support, including redeployment opportunities where possible, as well as career transition and wellbeing assistance," the statement said.

Union to support workers

According to a NSW government export report from last year, more than 300 people are employed at the Ashton site.

MEU northern mining and NSW energy district president Robin Williams said in a statement it was a "serious blow" for the affected workers and their families.

"The MEU will support our members throughout the redundancy process, ensure that all workplace entitlements and consultation obligations are met, and pursue redeployment opportunities across Yancoal's operations," he said.

"We expect Yancoal to actively pursue redeployment opportunities across its broader Hunter Valley operations, particularly given the strong performance of its other mines in the region.

"The prospect of further job losses in 2027 ahead of the mine's planned closure in early 2028 is sobering news and will leave many local families deeply concerned about their future."

The underground mine at Camberwell, north of Singleton, extracts coking coal, which is used in steel production.

The product is mostly exported through the Port of Newcastle.

Mr Williams said the MEU expected Yancoal to "engage openly and genuinely" with workers, to provide new employment and training opportunities, as well as providing appropriate notice for job losses.

Blow to regional community

NSW Upper Hunter MP Dave Layzell said the mine's pending closure was "not good news for the Hunter Valley".

"It is a concern that we're going to lose that many jobs and we have to absorb that,"

he said.

"We've got Mount Arthur, another massive mine, that is coming to a closure in the next few years.

"So it is challenging to be able to take up all these jobs and continue with a strong industry."

Mr Layzell said the workers directly employed by the mine were not the only people who would be impacted.

"Behind every single one of those jobs is usually a family who's supported by that work," he said.

"And there's a massive supply chain that's also supported by a big client in Ashton Coal.

"So there will be a lot more people impacted by this closure. It's unexpected.

"We do have a bit of time to be able to manage it, but it's still across the board. We didn't see it coming."